Question:On January 1 of Year 1, XYZ Company leases a building and records the leasehold asset and the liability at $210,620, which is the present value of five end-of-year payments of $50,000, each discounted at 6 percent. The asset has a useful life of five years and a zero salvage value. When the first lease payment is made on December 31 of Year 1, what amount would XYZ Company record for interest expense? 

A $0 
B $7,876 
C $39,380 
D None of these 

+ Answer
A 

+ Explanation
Answer not sure

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Md. Habib Ullah

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